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Should You Buy PagerDuty Stock? Is PD the Next SaaS Winner?

5/29/2020

Today, I provide analysis on PagerDuty (PD) stock. Is PD the next cloud stock to explode? Will the work from home economy expedite PD's success? You've seen Fastly, DataDog, Zscaler and others explode over the past few weeks. Is PagerDuty next? I share my thoughts, as well as detailed analysis and information on how I'm buying the stock. Organizations are racing to stand up their digital operations. They're building digital infrastructure and applications faster than ever before -- and often with newly-limited budgets and resources. This environment has created a tailwind for PagerDuty, a digital operations management company that helps businesses across just about every sector keep their infrastructure and applications running smoothly. PagerDuty is the central nervous system for digital ecosystems.

What does PagerDuty do?:
1. On-call management: Alerting and scheduling so your teams are ready and empowered to take fast action.
2. Incident response: Automate work across teams, execute detailed playbooks, and accelerate resolutions.
3. Event intelligence: Apply machine learning for full incident context, real-time triaging, and personalized recommendations
4. Analytics: Understand the systemic impact of issues on your customers, teams, and bottom line.
5. Visibility: A complete view of your data and operations, in real-time, plus stakeholder notifications.

PagerDuty is the brainchild of founder and Chief Technology Officer Alex Solomon. When Solomon was an engineer at Amazon (AMZN), he realized that when bugs arose in Amazon's code, employees would be "paged" at all hours of the night to fix the problem. Oftentimes, only one or two people really needed to be alerted, but he would only realize that after hours of trying to fix the problem. Armed with this knowledge, he started PagerDuty with the goal of accumulating all of the signals that servers send, figuring out a way to identify exactly where problems were, and notifying only the people who needed to be notified.

PagerDuty customers include:
Amazon AWS (AMZN)
Atlassian (TEAM)
Okta
Zendesk (ZEN)
New Relic (NEWR)
Zoom Video (ZM)
SeriveNow (NOW)
Microsoft (MSFT)
Datadog (DDOG)
Any many more! PagerDuty currently has more than 12,000 customers and boasts a churn rate of less than 5 percent on an annualized basis. Its customers include startups, SMBs and major enterprises across industries, including nine of the Fortune 10.

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

#stocks #investing #highgrowth #cloudstocks #stockmarket #stockanalysis #PDstock #PagerDuty

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How to Value Growth Stocks - 3 Ways to Analyze High Growth Cloud Stocks - SaaS Rule of 40 & More!

5/27/2020

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Today, I explain 3 ways to analyze growth stocks, specifically Software as a Services (SaaS) and cloud growth stocks. The Rule of 40, GRIT, and SWOT are covered in detail, then I provide my thoughts and opinions.

Rule of 40: Three ways to beat the Rule of 40. Companies can beat the Rule of 40 at all stages of their life cycle…..

1. Strong growth: Generally modestly profitable while investing in hypergrowth to build a large installed base, displace legacy vendors and attain the holy grail of becoming a platform. Beyond $1 billion in revenue, software businesses must evolve their operating model and process maturity to handle the complexities of serving multiple customer segments, with multiple products, across many countries. As growth slows, mature software companies look for ways to generate more revenue from existing customers, while becoming more efficient to increase profit margins and maintain performance that beats the Rule of 40.

2. Balanced, profitable growth: Half of the companies consistently exceeding the Rule of 40 do so with revenue growth between 10% and 30%. Such large, established companies as VMWare, Adobe and Salesforce have successfully developed new products for markets adjacent to their core, and navigated technology or business model transitions (for example, to SaaS and subscription models) to keep growing. Having climbed the S-curve, they must reorient their approach to reach the next level. Some companies accustomed to rapid growth struggle to adapt. For example, R&D spending needs to reflect the fact that subsequent waves of innovation might not be as valuable as the earlier breakthroughs, relative to the business size, and that the mix of investment may need to shift to renewing the original architecture. Disciplined and data-driven portfolio management and investment choices become increasingly important.

3. Profitability: Some companies beat the Rule of 40 with annual organic revenue growth below 10%. Established players like Oracle, SAP and Trend Micro have large, profitable flagship businesses. With growth stabilizing below 10%, companies turn to becoming more efficient and profitable—exacting pricing power, leveraging the scale and scope of large salesforces, cross-selling and expanding installed base customers, exploring new business models, increasing renewals, moderating R&D investment.

You can measure profit in a SaaS business — or any business — in many different ways. There are plenty of options such as Operation Income, Net Income, Free Cashflow, Cashflow and more, but the most well-known and most-used metric for startups and SaaS companies is EBITDA. Earnings before interest, taxes, depreciation and amortization is a way to measure profits without having to consider other factors such as financing costs (interest), accounting practices (depreciation and amortization) and tax tables.

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

#stocks #investing #highgrowth #cloudstocks #stockmarket #stockanalysis #Ruleof40

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The Next FAANG Stocks? FAZER Stocks - Disruptive Growth Stocks for the Next Generation

5/20/2020

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What are FAZER stocks? Are these the next FAANG? Find out which stocks are included in this acronym. These disruptive growth stocks could be the next generation of FAANG (Facebook, Amazon, Apple, Netflix, Google - Alphabet). I introduce each stock, provide a brief description of each company, then offer my opinions on how to best capitalize on these growth trends. Cloud stocks and work from home stocks have benefited significantly from recent events. Our new reality has already impacted the way companies do business. Many have embraced a complete digital transformation by adapting tools that enable remote working. FAZER stocks support this trend.

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

FAZER Stocks:
Fastly (FSLY) (fsly stock)
Appian (APPN) (appn stock)
Zoom Video (ZM) (zm stock)
Elastic NV | Elasticsearch (ESTC) (estc stock)
Roku (ROKU) (roku stock)
...The acronym F.A.Z.E.R. was created by Motley Fool.

#FAZER #FAANG #GrowthStocks #Stocks #GrowthETF #FSLY #SKYY #WCLD #ARKK #ARKW

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#1 Growth ETF - Cloud Computing & Work From Home Stocks - Massive Outperformance!

5/13/2020

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Do you have FOMO with stocks like DDOG, TWLO, FSLY, SHOP, NET, OKTA and others? Take advantage of cloud computing and work from home trends with the best growth ETF. Cloud computing represents one of the fastest growing and most profitable segments of the technology sector. Our new reality has already impacted the way companies do business. Many have embraced a complete digital transformation by adapting tools that enable remote working. Companies that often help the workforce to operate virtually “in the cloud” are top of mind. This growth ETF can bring the power of the cloud to your portfolio. For thematic or sector-focused investors, cloud-based strategies represent a higher beta1 play on tech. By focusing on fundamentals like revenue growth, this ETF seeks to provide exposure to the fastest-growing cloud software companies. The WisdomTree Cloud Computing Fund (WCLD) seeks to track the price and yield performance, before fees and expenses, of the BVP Nasdaq Emerging Cloud Index, an equally weighted Index designed to measure the performance of emerging public companies focused on delivering cloud-based software to customers. Why WCLD? * Gain targeted exposure to emerging, fast-growing U.S.-listed companies (including ADRs) that are primarily focused on cloud software and services * Use to replace or complement growth-oriented and technology sector investment strategies * Use it to satisfy demand for prospective high growth companies, with the potential for better sales growth, margins, and operating leverage.

WCLD includes the following stocks as of 5/13/2020:
Fastly Inc FSLY Zoom Video Communications ZM Twilio Inc TWLO Everbridge Inc EVBG Datadog Inc DDOG Five9 Inc FIVN Shopify Inc SHOP Zscaler Inc ZS Cloudflare Inc NET Docusign DOCU Okta Inc OKTA Coupa Software Inc COUP Crowdstrike Holdings Inc CRWD Veeva Systems Inc VEEV 2U Inc TWOU Atlassian Corp Plc TEAM Wix.Com Ltd WIX Ringcentral Inc RNG Pagerduty Inc PD PayPal Holdings Inc PYPL Qualys Inc QLYS Avalara Inc AVLR Slack Technologies Inc WORK Smartsheet Inc SMAR Realpage Inc RP ServiceNow Inc NOW Box Inc BOX Tenable Holdings Inc TENB New Relic Inc NEWR Adobe Inc ADBE Dropbox Inc DBX Elastic Nv ESTC Hubspot Inc HUBS Blackline Inc BL Proofpoint Inc PFPT Salesforce.com Inc CRM Q2 Holdings Inc QTWO Pluralsight Inc PS Appfolio Inc APPF Square Inc SQ Zendesk Inc ZEN Paycom Software Inc PAYC Workday Inc WDAY Mimecast Ltd MIME Yext Inc YEXT Workiva Inc WK Paylocity Holding Corp PCTY Medallia Inc MDLA Domo Inc DOMO j2 Global Inc JCOM Zuora Inc ZUO Anaplan Inc PLAN

At the end of the video, I compare SKYY ETF versus WCLD ETF. Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results. #FOMO #YOLO #Stocks #GrowthStocks #GrowthETF #FSLY #SKYY

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I'm Buying This Growth Stock - Hot SaaS Cloud Software Stock Ready for Take Off!

5/2/2020

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Today, I want to share my newest holding with you. It’s a cloud software company and the industry leader in large and growing market with TAM or Total Addressable Market of $18.5 billion. It’s a SaaS (Software as a Service) business with a high recurring revenue stream. It’s also a profitable business with 27% top line growth. Do you have any guesses as to which stock I am referring to?

I am going to break this company down for you and give you a concise summary of what the company does and why you should consider it for your portfolio. Ok ok, we get it, what stock are you talking about? The company is Blackline, stock ticker BL, but stick around to hear more about this company. I think you will be blown away by what I’m about to share with you. First, what does Blackline do? In a nutshell, Blackline helps companies close the books faster and cheaper with less errors. Seems straight forward, right? So what? Well, Blackline is now cash-flow positive and has a massive market opportunity in front of it. Huge opportunity! Wait until you see the numbers in a minute. It’s staggering. Blackline is the market leader in a market it actually created. It has a set of products that no one can compete with and is partnered with one of the largest ERP vendors in the world. Let’s dig a little deeper on the company background. Blackline is a leader in finance and accounting software and helps companies automate and streamline a variety of processes, including the financial close process, account reconciliation, and intercompany accounting. By providing a scalable and transparent platform, Blackline acts as the central workspace for finance and accounting professionals and enables them to take raw financial data from multiple systems and transform it into reliable, audit-ready financials for finance and accounting professionals. Blackline generates revenue by selling subscriptions to its cloud-based software platform as well as from professional services engagements. As of Q4 2019, subscription revenue contributed 93% of revenue, while professional services were only 7% of the mix. The financial close market is a market that is poised to grow exponentially over time regardless of economic condition around the globe. Every company must close its books every month. It's a never-ending process. And they all want to do it faster and cheaper. Blackline’s software cuts costs, reduces errors, and shaves days off the time it takes to close the books every month. Blackline created this market which has a massive potential for growth. Market research firm Frost & Sullivan estimates the market size to be $18.5 billion, with 165,000 potential customers worldwide.

WHY I BOUGHT BLACKLINE (BL):
93% recurring revenue mix with high retention rate
27% YoY Subscription growth 23% CAGR (Compound Annual Growth Rate)
80%+ gross margins Consistent improvement in profitability and cash flow
MOAT -limited competition -Best of breed
Strong partnerships with room for growth Partnership with
SAP will accelerate top line growth SAP is the world's largest ERP software vendor.
SAP became a global reseller for Blackline in 2018.
Having the No. 1 ERP vendor as a partner is a huge. It will be a big source of growth in the coming years. Revenue from the SAP partnership increased last quarter to 25% of Blackline's sales.
Strong Profitable Growth with scalable business model
Continued international expansion
Impressive management team
*Note = BL is a long-term hold for me....5 or more years.

Resources used:
https://seekingalpha.com/article/4340626-blackline-finding-value-in-saas https://investors.blackline.com/static-files/c8852b1a-fa77-4218-b994-3a91cfe82625

Disclaimer: I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

#STOCKS #INVESTING #HIGHGROWTH #CloudStocks #SaaSStocks #Techstocks #stockmarket

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Eric Cuka’s Blog

Should You Buy PagerDuty Stock? Is PD the Next SaaS Winner?

How to Value Growth Stocks - 3 Ways to Analyze High Growth Cloud Stocks - SaaS Rule of 40 & More!

The Next FAANG Stocks? FAZER Stocks - Disruptive Growth Stocks for the Next Generation

#1 Growth ETF - Cloud Computing & Work From Home Stocks - Massive Outperformance!

I'm Buying This Growth Stock - Hot SaaS Cloud Software Stock Ready for Take Off!

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